JK Tyre & Industries (530007) Q2 25/26 earnings summary

Executive summary

• Achieved consolidated quarterly revenue of INR 4,026 crores in Q2 FY26, up 10% year-over-year, with H1 FY26 revenue at INR 7,916 crores, driven by strong domestic and export demand.

• Profit after tax for Q2 FY26 reached INR 223 crores, a 54% increase year-over-year, with H1 FY26 PAT at INR 377 crores.

• Recognized for sustainability leadership, including top-tier ESG ratings, launch of India's greenest tyre, and advanced EV tyre range.

• Robust performance in both Indian and Mexican operations, with JK Tornel (Mexico) posting a 26% sequential sales increase and a five-fold EBITDA jump.

• Total comprehensive income for Q2 FY26 was INR 260.71 crores, up from INR 101.57 crores in Q2 FY25, aided by operational gains and favorable forex translation.

Financial highlights

• Q2 FY26 consolidated EBITDA was INR 536 crores, up 21% year-over-year, with margin improving to 13.3%.

• Q2 FY26 basic EPS rose to INR 8.08 from INR 4.93 year-over-year.

• Cash profits for Q2 FY26 were INR 428 crores (+38% QoQ, +33% YoY).

• Net debt as of September 30, 2025: INR 4,201 crores, mainly due to working capital and project CapEx.

• Net cash flow from operating activities for H1 FY26 was INR 866.15 crores, a turnaround from a net outflow in H1 FY25.

Outlook and guidance

• Revenue growth guidance maintained at double-digit (10%) for the year.

• EBITDA margin expected to remain in the 13%-15% range over the next 2-3 quarters.

• Focus on expanding sustainable product offerings and leveraging R&D for future growth.

• Continued investment in renewable energy and decarbonization technologies.

• CapEx outflow for FY26 projected at INR 1,200 crores, with major projects ramping up by Q4 FY26.